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4 NEWS 1.6.2023 HSBC Bank Malta p.l.c. had a strong start to the year with reported prof- it before tax for Q1 2023 of €26.5m, an increase of €21.7m over the €4.8m prof- it reported in the same period last year. e increase in profitability is mainly attributable to higher interest income and improved credit quality of the bank's loan book. Revenue was up €18.8m or 60% when compared to those reported in Q1 2022. e increase in revenue was mainly driv- en by higher net interest income due to interest rate rises. Increase in net interest income is mainly due to the bank placing its excess liquidity at positive rates com- pared to negative rates in same period last year. Insurance income was also higher than that reported in Q1 2022 given im- proved equity markets in Q1 2023. On 1 January 2023, the bank adopted IFRS 17 'Insurance Contracts'. Under IFRS 17 there is no present value of in- force business ('PVIF') asset recognised up front. Instead the measurement of the insurance contract liability takes into account fulfilment cash flows and a con- tractual service margin representing the unearned profit. In contrast to the bank's previous IFRS 4 accounting where prof- its are recognised up front, under IFRS 17 they are deferred and systematically recognised in revenue as services are provided over the life of the contract. e contractual service margin also includes attributable cost, which had previously been expensed as incurred and which is now incorporated within the insurance liability measurement and recognised over the life of the contract. e bank recorded an improvement in the credit quality of its loan book, result- ing in a release of expected credit losses ('ECL') of €3.7m in Q1 2023 compared to a release of €0.3m in Q1 2022. e Q1 2023 release reflected the up- grade of facilities which were granted mortaria during the Covid-19 pandemic and a favourable change in the probabili- ty weightings of economic scenarios. Investment in technology, automation and people continued to be priority ac- tions which, together with the impact of rising inflation, led to an increase in op- erating expenses of €0.5m compared to those reported in Q1 2022. Net loans and advances to customers and customer deposits remained broad- ly in line with 31 December 2022 levels. e bank's liquidity position remained strong and regulatory capital ratios con- tinued to exceed regulatory capital re- quirements. Geoffrey Fichte, Chief Executive Of- ficer of HSBC Bank Malta p.l.c., said: "We reported strong Q1 2023 results driven by increase in interest rates and improvement in the credit quality of our loan book. We remain focused on improving our customer service and in- vesting in technology while maintaining cost discipline. "We continue to innovate and respond to the evolving needs of our customers. For example, in Q1 2023, we launched the HSBC Key FIVE Critical Illness Cov- er plan which is a market-leading and standalone critical illness insurance pol- icy which is designed to support policy- holders in the event of being diagnosed with any of the five most common criti- cal illnesses," he said. "As the leading international bank in Malta with an ambitious net zero agen- da, HSBC is actively focused on chan- nelling finance and investment to where it can have the greatest impact, in close partnership with our clients. e materi- al investment in our Qormi campus con- tinues at pace, helping us to achieve our net zero ambition by 2030." HSBC records Q1 2023 pre-tax profit of €26.5 million CUSTOMERS who apply for a home loan from MeDirect before 30 Sep- tember 2023 will be given a €1,000 re- ward if they do not get a decision on their application within 15 days. is guarantee of a swift home loan re- sponse applies on all MeDirect's retail mortgage products including Home Loans, Green Home Loans, Property Investment Loans and Home Equity Loans. At the same time, MeDirect will be rewarding customers who are able to sign the deed of a property purchase in less than 100 calendar days from the date of issuance of the facility letter with a €1,000 monetary benefit. Larissa Ciantar, Senior Manager – Mortgage Lending at MeDirect Mal- ta, said, "In recent years MeDirect has established a reputation for its fast and efficient market leading ser- vice when it comes to issuing home loans quotes and sanction letters. We're now backing this up with the Swift Home Loans Guarantee. As Malta's first digital bank, we've com- bined technology with the expertise of our team to be able to give custom- ers a better experience and a decision faster than any other bank in Mal- ta. We're prepared to pay €1,000 to customers if we don't deliver on our promise." In addition to providing this guaran- tee of a quick decision on home loan applications, MeDirect's is also giving a €1,000 reward to customers who sign the property purchase deed in less than 100 days from the date when the facility letter is issued. is is de- signed to incentivise the conclusion of promise of sale agreements into actual purchases, a process which can also be long and frustrating for home buyers. "While MeDirect cannot di- rectly affect the legal processes be- tween buyer and seller, we hope this incentive will help to encourage all concerned to conclude proceedings efficiently." added Ciantar. More information on MeDirect's guarantee on home loans is available at https://promo.medirect.com.mt/ swift-home-loans. MeDirect launches Swift Home Loans Guarantee MeDirect's Swift Home Loans Guarantee promises a faster process for home buyers

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